Essay
Ivy claims that if a consumer is maximizing utility and happens to be purchasing equal quantities of good X and good Y, the MRSXY must equal 1. Prove this claim incorrect by drawing an appropriate budget constraint and indifference curve.
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In this example, the MRS = 30/15 = 2 in...View Answer
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Correct Answer:
Verified
In this example, the MRS = 30/15 = 2 in...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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